Repairs and upgrades boost value but can drain liquidity.Are you using any financing tools to manage improvements while maintaining healthy cash flow?

But then there is something called improvements, and the improvements is just as much, making the assessed value $2x. she has no idea how this could be.

Two main buckets: the building itself and capital improvements.

With the potential to add extra units, renovate existing structures, and activate commercial frontage, the investment can yield substantial returns.

Quote from @Marc Shin: I'm thinking about putting some snacks (oreas, pringles, popcorn, trailmix, granola bars etc) and drinks (coke, sprite) in my 1 bed 1 bath to improve the guest experience.  

Liability protection, especially if you’re holding multiple properties.Partnership structuring, if you’re investing with others.Cleaner separation of finances, if you use a business bank account and separate books.What You Could Do Next:If your goal is to deduct more, consider whether you (or your spouse) can meet REPS or STR criteria in the future.Speak with a real estate-focused CPA to double-check how those reno and repair costs were categorized (repairs vs. capital improvements), and how your passive losses were handled.This post does not create a CPA-Client relationship.

Spending money on improvements increases your cost basis, which lowers your taxable gain, but it doesn’t change the exchange rules.

With mortgage rates stabilizing in the 6s, affordability has improved, and buyers can still pursue seller-paid rate buydowns or builder incentives to make ownership more manageable.What if I’m a seller?

Initial rehab of your property is not "repairs", it is "capital improvements."

For example on a recent jumbo investment property loan with 20% down, with .5% in total lender costs rates are in the 6.5% range and improving..that is a significant difference from two years ago when most investment property loans were nearing 8%!